Urban Company slips into red in Q1, revenue jumps 44%

Urban Company, the digital home services platform, returned to losses in the first quarter (April–June) of FY27 despite posting a 44% year-on-year increase in revenue. The company, however, described the quarter as one of its strongest performances to date.

The company reported a net loss of Rs 92.12 crore in the April-June quarter, compared with a net profit of Rs 6.94 crore in the corresponding period last year. On a sequential basis, however, the company narrowed its losses by 43% from Rs 161.64 crore reported in the January-March quarter of 2026.

Revenue for the quarter rose to Rs 528.34 crore, marking a 44% increase from Rs 367.27 crore recorded in the same quarter of FY26.

In a communication to the stock exchanges, Urban Company said, “Q1 FY27 was one of the strongest quarters in Urban Company's history. Growth accelerated across nearly every part of the business, while the profitability of our core operations reached a new high. At the same time, we continued to invest aggressively in lnstaHelp, where unit economics improved despite rapid scale-up. improved despite rapid scale up.”

Urban Company said it acquired more than 1.2 million new users during the April–June quarter, marking the first time it has added over one million users in a single quarter. The company also delivered 13.2 million orders during the period, up 79% year-on-year.

The company's financial performance, however, was weighed down by its on-demand domestic services business, InstaHelp. The segment generated revenue of Rs 11.22 crore during the quarter but posted an EBITDA loss of Rs 131.58 crore, sharply higher than the Rs 9.24 crore loss recorded a year earlier. Urban Company launched InstaHelp in March 2025.

The company said it expects margins to remain under pressure in the near term due to aggressive discounting in the market, which it believes is not a sustainable business model.

“If and when pricing normalises, there may be a one-time adjustment in volumes across the category. We are clear-eyed about that, and equally clear that this is the phase we are prioritizing category leadership,” it noted.

In fact, all the business segments of Urban Company recorded growth during this quarter. Its international business segment registered a 82% YoY growth to touch a revenue of Rs 65.42 crore.

Urban Company said the net transaction value grew 76% on a YoY despite the conflict in the Middle East. It said both UAE and Singapore continued to deliver profitable growth. Its joint venture in Saudi Arabia scaled rapidly while significantly reducing losses.